Nigeria is intensifying efforts to boost local renewable energy production, with installed solar panel manufacturing capacity rising from 120 megawatts two years ago to about 300 megawatts, while an additional 3.7 gigawatts is currently in development as the country targets a leading position in West Africa’s clean energy market.
The Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu, revealed this during a webinar organised by the African Association of Energy Journalists and Publishers (AJERAP), noting that the expansion is being driven by government policies designed to attract private sector investment.
He said Nigeria secured about $425 million in 2025 to support the establishment of eight renewable energy manufacturing plants, adding that locally made solar panels are already being exported from Lagos to neighbouring Ghana.
According to him, investor interest in the sector has increased due to regulatory reforms introduced by the Nigerian Electricity Regulatory Commission, including updated mini-grid rules that now allow higher capacity projects and reduce bureaucratic barriers.
The new framework raises mini-grid limits from 1 megawatt to 5 megawatts, and up to 10 megawatts for interconnected systems, a move expected to support larger renewable energy developments and improve electricity access in underserved areas.
Aliyu also explained that the expanded mini-grid system could strengthen cross-border electricity trade, especially in border communities, contributing to broader regional energy integration efforts across West Africa.
He added that Nigeria’s off-grid electricity model is attracting attention from several African countries, including Mozambique, Benin Republic, Burkina Faso, Niger, Chad, Mauritania, and Mauritius, which are studying the framework for possible adoption.
He described the Distributed Access through Renewable Energy Scale-Up (DARES) programme as the world’s largest publicly funded renewable energy access initiative, aimed at expanding electricity access to 17.5 million Nigerians.
The programme is expected to connect over 2.5 million households and deploy around 1,350 mini-grids, including 250 interconnected systems, supported by $750 million in public funding.
It is also projected to attract an additional $1.1 billion in private investment through a results-based financing structure that requires developers to invest upfront.
Aliyu further noted that partnerships with financial institutions such as Citibank Nigeria, Lotus Bank, and the International Finance Corporation reflect increasing confidence in Nigeria’s renewable energy sector and long-term energy transition strategy.
